Major bank makes push in LRBA space
One major bank is looking to ramp up its activity with one of its lending products, particularly in light of the 30 June deadline for trustees with loans that are on non-commercial terms.
NAB’s Super Lever product, available to trustees who have loans to acquire shares or managed funds, has experienced increased interest and take-up in recent months.
This coincides with the ATO requiring LRBAs to be on commercial terms by 30 June, and the release of practical compliance guideline 2016/5.
Speaking to SMSF Adviser, head of NAB equity lending Adrian Hanley said NAB is looking to more actively promote the product in the marketplace.
“This product has played a role for the last four years within our business. But as the landscape is shifting […] we’re having more conversations about this product than we have [before], certainly in the last couple of years,” Mr Hanley said.
Trustees with potentially non-commercial loans in place are being encouraged to act fast to ensure their loans are compliant by 30 June.
The ATO is encouraging those who fear their loans won’t be on commercial terms to approach them well ahead of deadline.
“People should be starting to take action now and starting to take steps to do what they need to do to revise or restructure their arrangements. If they do have those concerns about not being able to meet 30 June deadline, we encourage them to come to us now rather than waiting until June to come and approach us,” said the ATO’s Kasey Macfarlane.